Energy Roundup: Suncor Buys Rival Petro-Canada, Tata Unveils Nano, and More
Suncor's purchase of Petro-Canada spurs oil sands consolidation debate -- Suncor Energy's plan to buy Petro-Canadafor $15.5 billion has sparked speculation and debate the deal will accelerate consolidation in the Alberta oil sands. The all-share deal -- the largest in the oil and gas industry since 2006 -- would create Canada's biggest energy producer. Petro-Canada's Fort Hills oil sands project -- a C$24 billion endeavor suffering from delays due to falling oil prices -- is expected to benefit from Suncor's takeover. Other possible oil sands deals include Total's public hostile bid for UTS and a much-rumored bid of Nexen, also by France's Total. [Source: Financial Times]
India's Tata Motors unveils super-cheap, compact Nano -- Tata Motors unveiled Monday its ultra-cheap compact car -- the $2,500 Nano-- a vehicle aimed at millions of aspiring four-wheel drivers. The fuel-efficient Nano, which has suffered from production and debt problems, targets India's motorcycle owners and is one of several new cheap compact cars expected to enter the market. Renault and Nissan, in their own deal, have partnered with Indian scooter maker Bajaj Auto to introduce their version of a small, cheap car by 2011. [Source: NYT]
PetroChina continues to boost oil storage -- PetroChina's Xinjiang Oilfield Corporationis expanding its oil storage capacity by 60 percent to 7.6 million barrels by August 2010 to handle more crude produced in its own fields and imported from Kazakhstan. Xinjiang Oilfield launched a massive crude oil storage project in December that will eventually be able to hold 50 million barrels of oil. China, the world's second largest oil consumer, relies on overseas supplies for half of its oil demand. [Source: Reuters]
Solyndra lands DOE's federal loan guarantee -- Solyndra, a Fremont, Calif.-based company that makes tube-shaped solar panels, has tentatively won a $535 million loan guarantee from the Department of Energy, the first to be awarded under an agency program created in 2005 to finance alternative energy. The loan will cover 73 percent of the cost to build a second factory near its Fremont headquarters, which is expected to employ about 1,000 people and make enough solar equipment annually to generate about 500 megawatts of electricity. [Source: MIT's Technology Review, Cleantech Brief]
Petrobras' oil workers threaten week-long strike -- Oil workers are expected to strike for five days to try and cut crude output at state-controlled Brazilian energy giant Petrobras in a protest over job cuts, pay and working conditions. In an unrelated event, Nigerian oil unions held a rally over security problems in the oil-producing Niger Delta. The Nigerian unions are demanding the government improve security and work for the release of all kidnapped workers in the region. [Source: Upstream]
Arrow sells Pure Energy stake, concedes to rival BG -- Arrow Energy sold its stake in Pure Energy to BG Group, after the UK-based energy giant's A$1.03 billion all-cash offer beat out its rival. Arrow held about 20 percent of Pure and had resisted BG's attempts at a hostile takeover until today, when company officials said the level of the bid rose to a point where it was more valuable to its shareholders to accept. [Source: WSJ]